mergers fees and tax basis of stock

May 03, 2008 1 Replies

When a stock I own is subject to a merger or spinoff, the brokerage which holds the securities charges a $20 "mandatory reorganization fee". What is the tax treatment for this fee? Do I add this amount to the tax basis of the stock, as with the commission on a purchase?


-David



========================================= MODERATOR'S COMMENT: Yes, since it is a fee associated with that particular transaction


the $20 fee gets added to the basis of the stock

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